HRLHormel Foods Corporation
Options Analysis Report•MEAT PACKING PLANTS
Market Cap $11.7B|NYSE
● 2026-04-17$21.19
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y -30.3%YTD -9.4%7D +1.5%
Options Vol
2,147
30D
Implied Move
±7.5%
IV Rank
31%
HRL Options Overview
IV is low with bullish flow. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
6.1
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 23.1% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.33x — IV premium over HV
Sector Relative≤50%
Sector percentile 33% — below sector median
Term Structure
<1.1xFront/Back 0.89x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 29.7% — normal range
Spread-Adjusted Value
<80%Effective IV 77.7% (ATM 29.7% + spread 24.0% + bias) — fair
Execution Efficiency
<3.0%Total drag 31.81% (spread 23.99% + slippage 7.82%) — high friction
Vega Efficiency
≥5.0Vega efficiency 1.09 (vega 2.618 / spread 23.99%) — spread drag
Sentiment
Bullish or bearish?
5.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Moderate signal (Conviction: +21%, Raw: +15%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +21% (bullish) — Raw: +15%
OI Skew Magnitude
≥15%|OI skew| 41.2% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -6.6%, OI skew +41.2% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 16%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -44%, ATM: +38%, OTM: -12% — bearish (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 77% — very bearish vs sector
Activity
Unusual activity?
3.6
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 0.8x avg — normal
Turnover Rate
≥15%Vol/OI 3.4% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +3.5% (5d) — building
Sector Relative≥60%
Sector activity percentile 37% — below sector avg
Trade Quality
≥30%Large trade volume 31% — institutional presence
Execution Urgency
≥60%Aggressive execution 21% — patient
Flow Conviction
≥30Conviction +21 (bullish) — mixed
Liquidity
Can I trade efficiently?
3.6
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 24.0% — wide
Adequate OI
≥10,000OI 63,613 — deep
Active Volume
≥500Volume 2,147/day — adequate
Reasonable Cost
≤$0.50$1.20 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 37% — tighter than sector
Order Book Depth
≥100 contractsDepth 274.6 contracts (bid:154.5 ask:120.1) — adequate
Execution Quality
<1.0%Avg slippage 7.82% — poor
Timing
Is now a good time?
7.4
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -11.5% — contango
IV Percentile Clarity
<30 or >70IV percentile 23% — buyer opportunity
Event Detection
≥10pts kinkIV kink -1.3pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 251.68 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No events detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +21% @ 60% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 61 (ITM 20% + inst 31%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls5.7
bullishIV cheap, mixed flow
Long Puts5.3
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put5.0
bullishIV too cheap, mixed flow
Covered Call4.5
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.